5Y Capital Explained

5Y Capital Management Limited
Native Name:五源资本
Former Name:Morningside Venture Capital (晨兴资本)
Type:Private
Industry:Venture Capital
Foundation:2008
Location:Wuyuan Road, Shanghai, China
Founders:Shi Jianming (Ken)
Liu Qin (Richard)
Products:Investments
Aum:$5 billion (31 March 2021)[1]
Homepage:www.5ycap.com
Footnotes:[2] [3]

5Y Capital is a Shanghai-based venture capital firm founded in 2008. It was previously known as Morningside Venture Capital before it rebranded in October 2020.[4] [5] [3]

Background

5Y Capital was founded in 2008 by Ken Shi and Richard Liu under the name, Morningside Venture Capital.[1] [6]

Prior to founding the firm, Liu and Shi worked as investment professionals at the Morningside Group, a family office founded in 1986 by Gerald Chan and his family. The Chan family currently runs the Hang Lung Group in Hong Kong.

As a gesture of support, Morningside Group authorized the firm to use the ‘Morningside’ brand in its operations as well as being a key investor in the firm.

In October 2020, the firm rebranded to 5Y Capital. The name comes from 'Wuyuan Road' which is the street where the firm has been headquartered since its inception.[1]

In 2021, Bloomberg reported that the firm was seeking to raise a new fund, and that it had delivered a $30 billion return on its investment in Kuaishou.[7] It closed a number of funds after reaching hard caps that year.[8]

In November 2023, it was reported that 5Y Capital was on track to surpass its target of raising $700 million for its new fund. This came when fundraising during the year had significantly declined due to various factors such as the China–United States trade war that limited US investments in Chinese firms.[9]

Investment model

5Y Capital focuses on early-stage venture investments in different sectors.[1]

Notable investments include Xiaomi, Kuaishou, SenseTime, Pony.ai and XPeng.

External links

Notes and References

  1. Web site: Xiaomi backer closes $2bn worth of dollar and yuan funds . Nikkei Asia . 30 May 2021 . 30 May 2021 . https://web.archive.org/web/20210530230734/https://asia.nikkei.com/Spotlight/DealStreetAsia/Xiaomi-backer-closes-2bn-worth-of-dollar-and-yuan-funds . live .
  2. Web site: Form ADV . SEC . 24 November 2022 . 24 November 2022 . https://web.archive.org/web/20221124130108/https://reports.adviserinfo.sec.gov/reports/ADV/299614/PDF/299614.pdf . live .
  3. Web site: Reale . Hannah . Who Is 5Y Capital? . The Wire China . 18 July 2021.
  4. Web site: Ku . Larissa . Morningside Venture Capital rebrands as 5Y Capital . 22 October 2020 . 30 May 2021 . 2 June 2021 . https://web.archive.org/web/20210602214436/https://www.avcj.com/avcj/news/3021501/morningside-venture-capital-rebrands-as-5y-capital . live .
  5. News: Chen. Lulu Yilun. Venture Firm That Made $30 Billion on Chinese Video App Plans New Fund. live. 30 May 2021. Bloomberg. 18 February 2021 . https://web.archive.org/web/20210218051645/https://www.bloomberg.com/news/articles/2021-02-18/venture-firm-that-made-30-billion-on-kuaishou-plans-new-fund . 18 February 2021 .
  6. Web site: Chinese Venture Capital Firm Morningside Venture Capital Becomes 5Y Capital -Asian Wealth Management and Asian Private Banking. 3 November 2020. Hubbis.com. 30 May 2021. 2 June 2021. https://web.archive.org/web/20210602214023/https://hubbis.com/news/chinese-venture-capital-firm-morningside-venture-capital-becomes-5y-capital. live.
  7. News: Venture Firm That Made $30 Billion on Chinese Video App Plans New Fund. 2021. Bloomberg. 16 March 2024. 18 February 2021. https://web.archive.org/web/20210218051645/https://www.bloomberg.com/news/articles/2021-02-18/venture-firm-that-made-30-billion-on-kuaishou-plans-new-fund#xj4y7vzkg. live.
  8. Web site: Xiaomi backer closes $2bn worth of dollar and yuan funds. 2021. asia.nikkei.com. 30 May 2021. 30 May 2021. https://web.archive.org/web/20210530230734/https://asia.nikkei.com/Spotlight/DealStreetAsia/Xiaomi-backer-closes-2bn-worth-of-dollar-and-yuan-funds. live.
  9. Web site: Huang . Zheping . November 29, 2023 . Early Xiaomi Backer to Surpass Funding Goal in Major China Test . Bloomberg News.

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